With the property market poised to hit its straps again in Victoria, investors are being warned not to get caught up chasing bargains but focus on quality properties.
Buyer’s agent Miriam Sandkuhler of Property Mavens says while traditionally the end of the year is quieter in the property market she expects it to be a busy finish to 2020.
While investment activity has dropped, Sandkuhler expects it to start to pick up again soon as borders open and pandemic restrictions are eased.
“Probably only 20% of the clients I am working with at the moment are investors,” Sandkuhler says.
“I think investors are taking a little bit more of a cautious approach. There is still uncertainty ahead, particularly when JobKeeper and JobSeeker run out in March.
“There is a possibility a lot of people are waiting for a bit of blood on the street, and unfortunately there is always an element of people who want to take advantage of situations like that.
“But it doesn’t mean that good quality is going to come to the market.”
Sandkuhler warns there is a large build-up of vendors waiting to sell.
“We have a lot of property hit the market recently and we are anticipating seeing more leading into Christmas.
“I am expecting big jumps in activity. There is a good chance that we will actually see big momentum (in the market) towards Christmas with motivated buyers and sellers rushing into the market.
“I certainly anticipate we are not going to have a normal Christmas and a normal January or February.
“People won’t take leave and go away so there will definitely be deals happening between Christmas and New Year – and well and truly into the January and February period, more than we have ever had before.
“Vendors are trying to make up for lost time, buyers are trying to make up for lost time and agents are trying to make up for months without being able to work as well.”
Sandkuhler warns investors to be cautious about rushing into the market trying to snap up bargains.
“I would suggest that if someone is an investor to really be patient and take their time and look around for an A grade property, not C grade property.
“A bad property at a discount is still a bad property – if it hasn’t had capital growth in recent years it is unlikely to do so.”
Investors should focus on family homes in established middle and outer ring suburbs, like Ringwood, Doncaster and Glen Waverley, with public transport close by.
“Just be careful of vendors looking to offload poor quality properties,” she says.“A grade property will hold its value in a downturn and grow in an upturn.
“A good property, an A grade property, usually doesn’t come at a discount. It is the bad properties that are sold at a discount and you just have to be careful not to buy something because it is cheap or reduced in price.”
